Selling_Options

[zivtheziv]

Don't worry, no question is naive question.
Everyone including myself were in your position one day so it's all ok.

Regarding what you asked it really doesn't have one clear answer.
For example you have the share price of a $20 stock like $ATVI or $80 stock like $BOFI or $200 stock like $AMZN and it will require different amount in your account to sell each.

It also depends the amount you sell. You can sell 1 condor or 1 spread or 25 of them like I did on $ATVI it all depends on your risk tolerance and the amount you want to make while risking a certain amount as well.

I for example made $5.4M ($5,400,000) from selling options in the past decade and most of my funds are tied up to real estate to generate me monthly income so I have an account which started of $100k that I trade on and I try to stick to my 2% rule so I won't risk more than a max lose of $2,000 per trade even if max win per trade is around $250 average.

I have margin account but I prefer not to use it if I don't have to.

I use option express platform and before each trade you have an option to watch simulation to see max profits or lost per the trade you are going to make before you take it so you can make adjustments as you wish.
It is a great tool that I use before finalizing my decision.

I hope this helps :)